Boosting production capacity

Stimulating national production, attracting foreign direct investment (FDI), and developing the textile industry are just some of the opportunities emerging in this sector.

A partnership with China was signed on the sidelines of the China-Africa Forum held in Beijing in early September. The Groupement des Entreprises et Partenaires Français (GEFP) reports this collaboration as a major success. According to the GEFP, the agreement involves the textile branch of the China Council for the Promotion of International Trade and the Economic Development Board of Madagascar (EDBM).

This cooperation is expected to help Madagascar attract FDI and strengthen local production. The GEFP stated that technology transfers would take place to increase Madagascar’s production capacity « to match the level of other Asian countries ». This goal reflects the current dynamism in the textile sector. According to GEFP data, the trade in clothing and textiles between Madagascar and China is projected to reach 450 million USD in 2023, with Malagasy textile stakeholders eyeing the one billion potential consumers in the Chinese market.

In May, Chinese investors visited Madagascar to explore business opportunities in what is one of the most significant segments of the industry. Chinese businesspeople have dominated the African textile industry in recent years. Despite the explosive growth of Madagascar’s textile industry, it remains one of the key markets in the sector. According to a World Bank report, Madagascar’s textile industry grew by 35% in 2022. In the first quarter of 2023, the sector experienced a 14% increase, and the Ministry of Economy forecasts a 4.9 % growth in the industry this year.